First American Financial Corporation Reports $6.1 Billion in Revenues for Fiscal Year 2024

First American Financial Corporation reported total revenues of $6.1 billion for the fiscal year ending December 31, 2024, marking a 2.1% increase from $6.0 billion in 2023. The growth was primarily driven by a rise in direct premiums and escrow fees, which increased by $193.9 million, or 8.6%, to $2.4 billion. However, the company also faced significant net investment losses of $401.6 million, compared to $206.4 million in the previous year, largely due to a strategic rebalancing of its investment portfolio that involved selling certain debt securities at a loss.

In terms of profitability, net income attributable to the company decreased to $131.1 million, or $1.26 per diluted share, down from $216.8 million, or $2.07 per diluted share, in 2023. The decline in net income was attributed to increased expenses, including personnel costs, which rose by 4.1% to $2.1 billion, and other operating expenses, which increased by 5.0% to $1.1 billion. The pretax margin for the title insurance and services segment fell to 4.3% from 8.6% in the prior year, reflecting the impact of higher fixed costs amid fluctuating order volumes.

Strategically, First American continued to focus on enhancing its core title insurance and settlement services business while pursuing growth opportunities through acquisitions and technological innovations. The company reported a flat daily average of title orders opened in its direct title operations compared to 2023, although residential refinance orders increased by 20.2%. The company also maintained a strong employee base, with a total headcount of 19,038 as of December 31, 2024, reflecting a commitment to operational efficiency and customer service.

Geographically, First American's title insurance and services segment generated approximately 93.6% of its consolidated revenues in 2024, with international operations contributing about 7.3%. The company remains the second-largest title insurance provider in the United States, as per the latest market share data from the American Land Title Association. Looking ahead, First American anticipates continued challenges in the real estate market, particularly due to high mortgage rates and economic conditions, but remains optimistic about leveraging its data capabilities and technological advancements to drive future growth.